Effective Strategies To Master Financial Management For A Successful Teaching Career Abroad
So, you have completed your TEFL certification and you’re ready to teach in your favourite destination?
It’s one of the best experiences that any TEFL teacher can have because they will get to live in a new culture, meet new people and most importantly they will get to explore their favourite destination and make a positive impact on the learner’s learning experience.
However, you must take care of one of the important aspects before moving to your favourite destination is “money management”. You must prepare a solid finance plan to balance your personal life and travelling life. One of the best ways to make financial planning in every part of life is by following the 50/30/20 rule.
Source: hedidor.com
Moreover, there are plenty of other effective ways that you can apply in your life while you’re teaching abroad to manage your finances successfully.
In this blog post, we have covered various essential financial planning tips that will help you to learn how you can manage your earnings and save at the same time effectively.
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So, without any further delay, let’s discover how you can make the most of your financial resources while teaching in your favourite destination.
1. Save Money Before Your TEFL Journey Begins
Before you even begin your TEFL teaching journey, it’s very crucial for you to start saving money. Below we have shared various reasons why starting to save money as early as possible before travelling to your favourite destination can be a good idea:
- The first reason is, that when you arrive in any of your chosen countries to teach, there will be lots of expected and unexpected expenses that you need to cover, such as- accommodations, transportation costs, utility expenses, food expenses, and any unexpected expenses for which you must have extra money for just in case scenarios.
- By keeping aside money for this kind of expense can keep you stress-free from any financially stressful situations and you can completely focus on your TEFL teaching journey with a piece of mind.
- The second reason is, that there is often a transition period happen when you start your TEFL teaching journey in your chosen destination. To get your first pay check it generally takes a month or in a few rare cases you might get it in a week or two. During this gap time, having savings can act as a stress releaser as it allows you to cover your daily expenses and other expenses without worrying.
- Lastly, having savings for emergency cases or unforeseen circumstances such as medical expenses or any long travelling expenses.
- Additionally, after you start to earn a regular salary, it is advisable to always practice saving money, which will allow you to allocate funds for rent, traveling plans, starting a business, and future plans or goals. This will ultimately help to build a strong financial foundation for yourself.
2. Research Your Chosen Destination Economy
Once you have chosen your favourite destination to teach English as a foreign language, it is advisable if you do your research about the economy of that country. By understanding the cost of living and the local currency exchange rate will assist you in making an effective finance plan successfully.
Look at what’s like spending a day looks like and what expenses you can expect in your daily life like knowing the price of meals, groceries items, vegetables, personal products items, and many more. The more you familiarize yourself with the local economy of your chosen destination, the better you make your financial planning.
3. Understand the Currency Exchange Rate
One fact everybody is aware of who’s travelling to any foreign destination is they need to deal with a different currency. It’s suggested that you research the currency rate fo your chosen country and compare it with your local currency to have a better estimation of the money you have to spend over there. This will help you to budget and plan how much you can spend and save accordingly.
4. Choose The Right Banking Option
Choosing the right banking option is one of the crucial things to manage your finances effectively. Research thoroughly and look for reputed banks that offer services like- multi-currency accounts and international money transfers. Before opening any bank account, you must also consider factors like which banks are giving more features like- online banking, convenience, low maintenance fees, lower ATM withdrawal charges, and competitive exchange rates. You can even ask for recommendations from your fellow expatriate teachers or from even your employers.
Additionally, we also suggest you, if you want to transfer money to your family you must use platforms like PayPal for ease.
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5. Know About Taxes and Systems
If you’re planning to teach in your favourite destination for a longer tenure then it is advisable to know about the taxes and system of that country, because you have to pay taxes in both for your home country and your current country of residence. It’s better to consult with a certified tax accountant to understand the tax system of that country and understand whether there are any deductions and relief that can be applied to your foreign-earned earnings or not.
Additionally, know about the situation if you intend to send your earned money to your home and what taxes will get levied on it.
6. Look For Opportunity To Earn Extra Income
No matter how well you have panned your budget and finances, uncertain situations can crop up out of nowhere. So, to ensure that you don’t face any financial crunch situation, it is suggested to look for extra jobs, summer internships, online tutoring, or freelancing. By earning extra money and proper financial planning, you can rest assured that no matter how dire the situation can become, you can come out of it smoothly.
Financial Planning Is The Way For a Smoother TEFL Teaching Career
One of the reasons that many individuals opt for a TEFL teaching career is that they get to teach and live their dream life in their favourite destination of their choice. However, living in a foreign country requires solid financial planning to lead a happy life.
In this blog post, we have shared various helpful tips and strategies with which you can make effective budgeting and financial plans that will help you deal with any uncertainty and manage your day-to-day lives easily.
So, what are you waiting for, start pursuing an online TEFL course, pack your bags, and most importantly make proper financial planning, to embark on your teaching adventure in your chosen destination.
Happy teaching!
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Written By : Abhishek